INCOME TAXES

12 Months Ended

Dec. 31, 2011

INCOME TAXES [Abstract]

INCOME TAXES

NOTE 5 -     INCOME TAXES

The Company has generated net operating loss (“NOL”) carryforwards for income tax purposes, which are available for carryforward against future taxable income. At December 31, 2011, the Company had Federal NOL carryforwards of approximately $1,192,000, which expire through 2026.

The income tax expense (benefit) consisted of the following:

	2011		2010
Current:
State	$	10,882	$	7,400
Deferred:
Federal		332,571		577,685
State		58,687		101,945
	$	402,140	$	687,030

The actual tax expense for 2011 and 2010 differs from the "expected" tax expense for those years (computed by applying the applicable United States federal corporate tax rate to income before income taxes) as follows:

	2011			2010
Computed "expected" expense	$	524,292		$	680,135
Permanent differences		3,579			2,186
State and local income tax expense		10,882			7,400
Depreciation and amortization expense		(81,965	)		(58,990	)
Unrealized mark-to-market adjustment		(14,669	)		2,508
Other		(39,979	)		53,791
Income tax expense	$	402,140		$	687,030

The tax effects of temporary differences that give rise to significant portions of the net deferred tax assets/(liabilities) at December 31, 2011 and 2010 are as follows:

	2011			2010
Deferred tax assets:
Net operating loss carryforwards	$	476,670		$	888,221
Other		50,674			55,563
Total deferred tax assets		527,344			943,784
Deferred tax liabilities:
Goodwill amortization		(654,970	)		(594,538	)
Fixed asset depreciation		(29,759	)		(115,373	)
Total deferred tax liabilities		(684,729	)		(709,911	)
Net deferred tax assets/(liabilities)	$	(157,385	)	$	233,873